Business Assistance Fund (BAF)

Business Assistance Fund (BAF) is sponsored by City of Saint Paul. The Business Assistance Fund provides gap financing to eligible businesses throughout the City of Saint Paul for building improvements, equipment purchase, building acquisition, working capital, inventory purchase, and professional fees. Tier 1 offers forgivable loans up to $20,000 for businesses with annual revenues under $500,000 and total project costs under $50,000.

Business Assistance Fund | Saint Paul Minnesota The Business Assistance Fund provides financing to new and existing entities, that have a need for capital to improve and/or grow their business or organization. The Business Assistance Fund (BAF) is available to eligible businesses throughout the City of Saint Paul. Businesses in the Downtown Improvement District may qualify to use the Downtown Vitality Fund portion of the overall BAF.

The fund is gap financing – generally, City dollars should not exceed 50% of total project cost and must be used in a way that serves a public purpose, as outlined below. Eligible Businesses for Business Assistance Fund For-profit and non-profit entities engaged in an eligible activity and/or use located at a physical address or are relocating to a physical address in the City of Saint Paul.

The Business Assistance Fund is limited to the following eligible uses: Building improvements – interior and exterior, including permanently affixed, physical (“bricks and mortar”) enhancements which strengthen and/or improve the neighborhoods of Saint Paul Working capital and inventory purchase Professional fees in conjunction with the completion of the project Public Purpose Evaluation In addition to considering viability and need, approved projects will be evaluated on how they meet the following public purposes: Project financing creates or retains jobs in Saint Paul1, or Project financing benefits the community in at least ONE of the following ways: Positive tax base impacts through capital investments to real property Renovation of vacant commercial building/multi-tenanted space Investments in low-moderate income areas Investments to meet documented underserved or unserved community need Financing will be structured with terms tailored to best meet the needs of the project and fortify business or organizational success, including the option to defer payments.

Financing from the Business Assistance Fund when combined with any other City or HRA dollars including, but not limited to STAR and/or CDBG, is targeted to be less than 50% of the total project costs.

The following flexible financing terms would apply: TIER 1: Forgivable loans up to $20,000 for Businesses with annual revenues under $500,000, and total project costs under $50,000: Up to $10,000 is available as a 1:1 match with Community Development Financial Institution (CDFI) funding Forgiveness over a 4-year term (25% per year of operation) May be repayable if business ceases operation or relocates outside of Saint Paul TIER 2: Amortizing loans generally sized between $20,000-$150,000 for larger businesses locating or expanding in the City of Saint Paul standard terms apply: Project financing must include no less than 5% owner equity Standard terms are 3% interest rate and a 10-year term Security includes a promissory note and personal guaranty, and a subordinated mortgage (as applicable) and security agreement Apply for Business Assistance Funding Apply for the Business Assistance Fund by filling out a Business Assistance Intake Form.

Apply for Business Assistance Funding